The general insurance industry made $2.25 billion after-tax profit from continuing operations in the June quarter, down from about $2.36 billion a year earlier, according to Australian Prudential Regulation Authority data released today.

For the year to June, the industry achieved a $5.3 billion profit, down from about $7.35 billion.

Taylor Fry director Collin Wang says the data shows the industry is in “pretty good shape”.

“Even though profit was down on last year, the context is that FY25 was a very strong year that had benign natural perils experience, as well as strong investment returns,” he told insuranceNEWS.com.au.

The industry made an underwriting profit of $2.39 billion in the June quarter, down from $2.67 billion a year earlier.

Insurance revenue increased to $20.37 billion from $19.68 billion; incurred claims worsened to $10.26 billion from $9.75 billion; and the investment result improved to $1.96 billion from $1.84 billion.

Householders insurance gross written premium grew to $4.53 billion from $4.26 billion, but its underwriting gain fell to $431 million from $702 million, dragged down by a blowout in incurred claims to $2.09 billion from $1.39 billion.

Short-tail property lines comprising householders, commercial and domestic motor, and fire and industrial special risk booked GWP of $13.48 billion and underwriting profit of $1.24 billion in the June quarter. Commercial motor made an underwriting gain of $148 million, domestic motor $541 million, and fire and ISR $126 million.

Long-tail lines GWP increased to $5.28 billion from $4.99 billion, but underwriting profit reduced to $362 million from $473 million.

---

From the latest Insurance News magazine: Flood, fire, cyclone ... tornado? Why Australian weather experts are warning of an often-overlooked nat cat threat

---